(3) Find the proceeds of the following notes:

(4) Find date of maturity, term of discount, bank discount, and proceeds of following notes and drafts, each bearing interest at 5%.

(5) Many short-sighted merchants fail to take advantage of discounts by paying bills promptly. Most wholesale dealers give a liberal discount for receiving their money within 10 days of the date of the bill. It is sometimes a saving to borrow money at the bank to discount the bills.

Example:

Amount of bill $100, if paid in 30 days

3% discount if paid within 10 days ($3.00)

This means $3.00 for 20 days; the interest on $100 for 20 days at 6% is $.33. This shows a saving of $2.67. The saving on $1000 would be $26.70.

(6) A bill of $250 is due in 60 days. A discount of 5% is allowed if paid within 10 days. How much is saved if the bill is paid on the tenth day?

(7) Why is it economy to borrow money and discount bills?

$1425.00

Providence, R. I., Dec. 6, 1921.

At three (3) days' sight pay to the order of

PHOENIX NATIONAL BANK, PROVIDENCE, R. I.

Fourteen hundred twenty-five Dollars,

and charge the same to account of

(8) Find the proceeds of the following sight drafts:

CHAPTER XXIII

TAXES AND INSURANCE

1. Name some of the imported goods in a large department store. How does the price of these goods compare with the price of domestic goods? What is the cause of the difference in price?

2. When a tax is imposed on goods imported into the country from foreign countries, what is the tax called? How are these duties authorized?

3. For what is the revenue received from duties and customs used? Tell what you can of the purpose of duties and customs.

4. Does the United States Government receive revenue from any goods manufactured in this country? What is the tax from this source called?

5. Name some articles manufactured in this country from which Internal Revenue is obtained.

6. What imports are taxed heavily for the sake of revenue only? Is this justifiable?

7. Are these articles of luxury or of necessity?

8. From which five countries does the United States buy most of its goods? From what countries do most of the important goods in your store come?

9. How will knowledge of this subject benefit you as a store employee? As a customer buying goods? As a citizen of the United States?

127. National taxation. The National Government obtains the money with which it pays its bills from two sources: (1) Duties (customs or tariff), which are taxes levied upon goods imported from foreign countries.

(2) Internal revenue (excises), or taxes levied upon certain articles which are grown or manufactured in this country (cigars, tobacco, etc.). Congress fixes a tariff or list of duties in the United States. These duties are collected at

the Custom House, established by the government for the transaction of business relating to duties, at the various Ports of Entry.

1. The Collector of the Port is the officer in charge of the Custom House; his duties are to supervise all entries and papers relating to them, estimate all moneys and employ assistants. (Pupils should visit the Custom House if possible.) Import duties are of two kinds:

(1) An ad valorem duty, which is a certain per cent of the value of the imported goods.

(2) A specific duty, which is a tax levied upon the number, weight, or measure of the goods (ton, bale, pound, barrel, etc.) without regard to their value.

2. When goods are purchased in a foreign country, an invoice or manifest (statement showing the names of the various articles being imported, with their actual cost or value, made out in the currency of the country from which they are imported) is filed with the United States Consul, in the place where the purchase is made. He sends a copy to the Collector of the Port where the goods are to be sent; when the goods arrive the cases are opened and the quantity and value are compared with those stated in the invoice. If they are found to be undervalued, a tax is imposed.

3. Travelers' baggage is also inspected for dutiable goods. Importing goods without paying the required duty or underestimating the value, is smuggling. Cite any instances of smuggling that you may know. How are smugglers treated by the government?

4. Duties are figured by United States officers in even dollars only; fifty cents or more is counted as another dollar; any amount smaller is not considered. Thus, if the duty value of goods was $125.25, the goods are valued at $125; but if the duty value is $125.65, it is counted as $126. This makes computation easier.

Problems

(1) What is the ad valorem duty on an invoice of serges at 15%, which cost $1240 in England?

(2) What is the duty on a bale of Irish linen which cost $4280, at 33%?

(3) Skein silk, costing 5508 francs in Paris and weighing 625 lb. net, was taxed $.30 on the pound and 12% ad valorem. What was the amount of duty to be paid?

(4) What is the duty on 250 yd. of lace invoiced at $.25 per yard and 25% ad valorem?

(5) What is the duty on 2400 lb. of wool invoiced at $.16 a pound at 22% ad valorem?

(6) Goods are invoiced at 12,600 francs. At 36%, what is the duty? (1 franc = $.193 at the normal rate of exchange. What is its value now?)

(7) What is the duty at 60% upon a consignment of 425 dozen kid gloves, invoiced at 80 fr. a dozen?

(8) What is the specific duty on 800 quarts of oil at $1.20 a gallon? What is the duty at 51⁄2¢ a pound on 42 boxes of dates weighing 158 lbs. each, tare (weight of covering), 18 lbs. on each box.

(9) What is the duty at 36¢ a square yard and 10% ad valorem on 1000 sq. yd. of carpet, invoiced at $1.75 a sq. yd.?

(10) a. A shipment of straw-matting, 50 pieces averaging 40 yd. each. b. 30 pieces of linen, 30 yd. each. c. 15 pieces tricotine, 50 yd. each.

(11) Estimate the duty on the above goods, at the present day quotations.

(12) Explain how the family living in a rented house helps pay the city bills.

(13) How does your mother, who buys the meat, help the butcher to pay his rent?

(14) If men overcharge the city for work that they do, how does this affect taxes?

(15) Explain how everyone has to help pay for schools.

(16) What kinds of buildings or other property in your town are not taxed?

(17) Explain how your father helps to pay the State tax. (18) What is the difference between a tax and a license? (19) What is a war tax? Who pays such a tax? Name five different ways in which you are helping to pay for the Great War.